ISLAMABAD – Chinese e-commerce giant Temu has landed in hot water in Pakistan as the Competition Commission of Pakistan (CCP) begins reviewing complaints of alleged anti-competitive and misleading market practices.
Temu, which entered the Pakistani market just a few months ago, has rapidly gained traction through an aggressive digital advertising blitz, offering steep discounts and risk-free shopping pitches that attracted thousands of buyers. But local businesses say the platform’s ultra-low prices and unregulated operations are putting domestic sellers at an unfair disadvantage.
The Chainstore Association of Pakistan (CAP), representing independent retailers and online sellers, has formally lodged a complaint with the CCP, warning that foreign platforms like Temu and Shein are undermining Pakistan’s formal economy.
“These companies have no legal or physical presence in Pakistan yet operate freely via online portals,” CAP said in its statement. “They offer artificially underpriced or substandard products under the De Minimis exemption, avoiding taxes and import duties. Meanwhile, local businesses fully comply with tax, customs, and regulatory obligations, creating a deeply distorted playing field.”
Predatory pricing and consumer risks
CAP and other complainants argue Temu’s pricing strategy amounts to predatory pricing—deliberately selling products below market value to squeeze out competition. Domestic retailers warn this could wipe out small businesses that already face heavy taxation and compliance costs.
Consumer protection is another key concern. Since Temu operates without local registration, there is no quality control, warranty, or clear dispute resolution process for Pakistani shoppers. Moreover, Temu currently only accepts pre-payment in foreign currency, raising fears of additional strain on Pakistan’s current account.
Under-declared shipments and tax evasion
Industry insiders claim Temu frequently under-declares the value of shipments, splits high-value orders into smaller parcels to stay below tax thresholds, and mislabels goods to bypass customs duties. This not only hurts the national exchequer but also violates fair trade norms.
“Local sellers are penalised even for minor compliance lapses, while these platforms face no enforcement,” said one retailer. “It’s destroying the formal e-commerce ecosystem and costing Pakistan jobs and revenue.”
Call for urgent regulatory action
CAP has urged the CCP to launch a full-scale investigation and work with the Ministry of Commerce, FBR, and SECP to introduce mandatory registration for foreign e-commerce platforms. It has also recommended that logistics and courier companies only process shipments with valid invoices and accurate declared values, alongside a verifiable digital tracking system for better oversight.
A separate complaint has also been filed through the Office of Fair Trade in Islamabad by a coalition of independent online sellers who accuse Temu of misleading consumers and destabilising the market.
So far, customs authorities have taken limited action despite mounting evidence, leaving local businesses feeling abandoned. The complainants warn that if left unchecked, platforms like Temu will hollow out Pakistan’s regulated retail and e-commerce industry.
